EUR/USD: year-end target at 1.3000 - Scotiabank

FXStreet (Córdoba) - Camilla Sutton, strategist at Scotiabank commented that the hold a year-end target for EUR/USD at 1.3000 as investors position for policy action by the ECB.Key Quotes

“EUR dropped to a fresh 11-month low early in the Asian session and has subsequently recovered back closer to 1.3200”.

“There were no data releases; but the ongoing collapse in European bond yields as investors position for policy action by the ECB. September 4th is the next policy meeting; leading into it the release of the flash CPI on Friday (expected to fall to 0.3% on headline) and Eurozone GDP will prove important releases”.

“We hold a year-end EUR target of 1.30”.

“EUR/USD short‐term technicals: bearish—with both short and medium term studies warning of further downside risk. The RSI is at 25, which is approaching oversold levels; however downward pressure on spot could see this fall lower before the market rests to catch its breath. Support lies at the recent low of 1.3179; resistance comes in at 1.3220”.